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In recent times, finding an affordable new vehicle has become increasingly challenging as manufacturers step back from producing less expensive and lower-margin models. The situation is only set to worsen, as Nissan is reportedly planning to retire the subcompact Versa sedan, which is among the most affordable cars available in the U.S. market.
According to sources familiar with the situation, as reported by Automotive News, the Versa is scheduled for discontinuation next April, effectively concluding the 2025 model year early. There seems to be no next-generation version on the horizon, meaning the Versa will exit the subcompact car segment around the same time as the Mitsubishi Mirage, which is also facing its end (both models have been selling well recently). This will remove subcompact cars from the U.S. market, leaving only more expensive subcompact crossovers and high-end superminis from brands like Fiat and Mini as options. [retching sounds]
The discontinuation also highlights a significant reduction in Nissan’s sedan offerings, following the Maxima’s effective end last year and the Altima’s uncertain future. While the Altima has received a temporary reprieve, allowing it to be produced into the model year 2026, it remains unclear how long this respite will last. The only sedan left in Nissan’s lineup will be the compact Sentra, which has been reported as the brand’s second-best-selling model in the first half of 2024.
Nissan has chosen not to comment specifically on the reported discontinuation of the Versa, labeling the report by Automotive News as “speculation.”
A company representative stated, “We haven’t issued any announcements regarding this, and the Versa continues to be a key part of our lineup. We are focused on investing in sedans to provide appealing vehicles equipped with consumer-friendly technology. Sedans still play an essential role in our product strategy, offering numerous benefits, such as lower ownership costs.”
After the Versa, the next most affordable new car is the compact Kia Forte sedan, which starts at $21,145. This price is significantly higher than the Versa’s base cost of $17,245, representing nearly a 23% increase—a notable difference for budget-conscious buyers. The phase-out of the Versa will contribute to the growing unaffordability of new cars, as stagnant incomes clash with rising living costs in an unstable economy. (For those intending to reference the Dow Jones in the comments, consider listening to the song Hall & Oates wrote for you.)
Clearly, manufacturers anticipate that consumers will spend more than they can afford on vehicles that exceed their needs. Once again, the auto industry seems to be paving the way for new competitors, similar to past trends. The industry doesn’t have to wait for the significant downturn associated with the next economic collapse (or when affordable Chinese cars make their way into the market), but it appears that this is the collective future envisioned by automakers.
Update: Jul. 11, 7:00 p.m. ET: A spokesperson for Nissan did not provide comments on the reported discontinuation of the Versa but emphasized the importance of sedans in the brand’s current lineup and future plans.
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